Tinubu Requests NASS Approval for $21.5bn Loan and Multi-Currency Grants
President Bola Ahmed Tinubu has submitted a formal request to the National Assembly (NASS) seeking approval for a comprehensive external borrowing plan. The request includes a $21.54 billion loan, €2.19 billion, ¥15 billion, and a €65 million grant, all intended to support Nigeria’s critical infrastructure and economic development from 2025 to 2026.
The president also proposed the issuance of a $2 billion foreign currency bond to raise additional funds for national projects.
Loan and Grant Breakdown Presented to NASS
Loans Requested:
$21.54 billion – primary external borrowing for multi-sectoral development
€2.19 billion – to support bilateral projects, mainly with European partners
¥15 billion – from Asian lenders to support key infrastructure and technical projects
Grants and Bonds:
€65 million grant – non-repayable support for targeted development interventions
$2 billion foreign currency bond programme – to be raised from international capital markets
The requests were delivered through three separate letters, which were read during plenary sessions on Tuesday, May 27, 2025, by Senate President Godswill Akpabio and House Speaker Abbas Tajudeen.
Purpose of the Borrowing: Infrastructure and Economic Stabilization
President Tinubu explained that the loans and grants are necessary to finance strategic national projects across a wide range of sectors:
Key Focus Areas:
Infrastructure Development
Agriculture
Education and Health
Water Resources
National Security
Pension Liabilities
Public Financial Management
According to the president, the borrowing is part of Nigeria’s broader Medium-Term External Borrowing Plan (EBP) and is in line with the administration’s Renewed Hope Agenda, targeting long-term economic recovery and inclusive growth.
Economic Context: Post-Subsidy Reforms and Rising Inflation
Tinubu’s request comes amid the economic challenges following the removal of fuel subsidies and the unification of the naira exchange rate. These reforms, while aimed at stabilizing Nigeria’s economy, have led to heightened inflation, increased cost of living, and widespread public concern.
The president argues that the external funds will:
Accelerate delivery of essential public services
Stimulate job creation and private sector growth
Improve fiscal sustainability through long-term investments
Next Steps: Legislative Review and Approvals
The National Assembly has referred the borrowing plan to its relevant committees for further review. Deliberations are expected in the coming weeks, with lawmakers likely to scrutinize the debt sustainability, project feasibility, and expected returns on investment.
Nigeria’s Rising Debt Profile: A Concern?
With this new request, questions have resurfaced about Nigeria’s growing external debt burden, which has crossed $42 billion as of early 2025. Economists and policy analysts are calling for greater transparency and accountability in the loan disbursement and usage.
However, the Tinubu administration insists that the borrowings are targeted and necessary for transforming Nigeria’s economic foundations.
